The Lagos State government, through its Ministry of Commerce, Cooperatives, Trade, and Investment, is set to formalise a partnership with the Bank of Industry (BoI) and Sterling Bank with the signing of a Memorandum of Understanding aimed at improving access to finance for small and medium-sized enterprises (SMEs) across the state.
The signing ceremony, part of the launch of the innovative Lagos State Access to Finance for SMEs through Co-operatives (LASMECO) programme, will take place tomorrow at Alausa, Ikeja, Lagos. According to Folashade Ambrose, Commissioner for Commerce, Cooperatives, Trade and Investment, LASMECO is a pioneering public-private financing initiative designed to provide low-interest, risk-mitigated loans to SMEs in key sectors such as healthcare, agriculture, manufacturing, creative industries, and the circular economy.
“This initiative is a game-changer,” Ambrose stated. “It will significantly boost access to finance for SME owners in Lagos by offering loans of up to N10 million at a 9% interest rate, with terms of two to three years. Importantly, the loans are non-collateralised, with 50% of the loan guaranteed by Sterling Bank.”
Governor Babajide Sanwo-Olu is expected to officially launch the Access to Finance for SMEs initiative at the event, which will be attended by major stakeholders from both the public and private sectors, including BoI Managing Director, Olasupo Olusi; Sterling Bank Plc Managing Director, Abubakar Suleiman; Manufacturers Association of Nigeria (MAN) President, Dr. Francis Meshioye; and Lagos Chambers of Commerce and Industry (LCCI) President, Gabriel Idahosa.
During the launch, Ambrose will sign the MoU on behalf of the Lagos State government, with Olusi representing BoI. The programme is a key component of Governor Sanwo-Olu’s THEMES+ economic transformation agenda, designed to drive industrial inclusiveness and economic development across Lagos State.